MIRA INFORM REPORT

Report Date :

06.03.2012

IDENTIFICATION DETAILS

Name :	PARAGON POLYMER PRODUCTS PRIVATE LIMITED
Registered Office :	Paragon Building, P B No. 61, Sreenivasa Iyer Road, Chalukkunnu, Kottayam-686001, Kerala
Country :	India
Financials (as on) :	31.03.2011
Date of Incorporation :	27.07.1990
Com. Reg. No.:	09-005761
Capital Investment / Paid-up Capital :	Rs.100.000 Millions
CIN No.: [Company Identification No.]	U24134KL1990PTC005761
TAN No.: [Tax Deduction & Collection Account No.]	TVDP00372B
PAN No.: [Permanent Account No.]	AABCP3052F
Legal Form :	Private Limited Liability Company
Line of Business :	Manufacturer and Exporter of Velox Solid Rubber Tyres.
No. of Employees :	Not Divulged

RATING & COMMENTS

MIRA’s Rating :

Ba (47)

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Maximum Credit Limit :	USD 2000000
Status :	Satisfactory
Payment Behaviour :	Usually correct
Litigation :	Clear
Comments :	Subject is an established company having Satisfactory track. The company has incurred some losses in the current year. However, trade relations are reported as fair. Business is active. Payments are reported to be usually correct and as per commitments. The company can be considered normal for business dealing at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office / Head Office :	Paragon Building, P B No. 61, Sreenivasa Iyer Road, Chalukkunnu, Kottayam-686001, Kerala, India
Tel. No.:	91-481-2568812/2568813/2564893/2562643/2564788
Fax No.:	91-481-2564819
E-Mail :	priktm@asianetindia.com paragonktm@dataone.in
Branches :	Located At: Salem Bhopal Bhiwandi Delhi Kolkata Bangalore Hyderabad Baroda Bhubaneshwar Kanpur Nagpur Pune Raipur Vijayawada

DIRECTORS

As on 30.09.2011

Name :

Mr. Joseph Rachira Koduvi Thomas

Designation :

Managing Director

Address :

Koduvi Rachira, Malloosserry P O, Kottayam-688041, Kerala, India

Date of Birth/Age :

16.05.1949

Date of Appointment :

27.07.1990

DIN No.:

00318521

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U52323KL1987PTC004915	FALCON AGENCIES PRIVATE LIMITED	Director	30/09/1989	30/09/1989	-	Active	NO
2	U24134KL1990PTC005761	PARAGON POLYMER PRODUCTS PRIVATE LIMITED	Managing director	27/07/1990	27/07/1990	-	Active	NO
3	U01920KA2000PTC026834	PRESTON INDIA PRIVATE LIMITED	Director	3/4/2010	3/4/2010	-	Active	NO
4	U00311KA1988PTC009613	ELASTREX POLYMERS PRIVATE LIMITED	Director	3/4/2010	3/4/2010	-	Active	NO

Name :

Mr. Reji Abraham

Designation :

Director

Address :

Murattupoovathinkal, Muttambalam P O, Kottayam-686004, Kerala, India

Date of Birth/Age :

12.03.1955

Date of Appointment :

22.12.1993

DIN No.:

00418423

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U52323KL1987PTC004915	FALCON AGENCIES PRIVATE LIMITED	Director	24/11/1987	24/11/1987	-	Active	NO
2	U24134KL1990PTC005761	PARAGON POLYMER PRODUCTS PRIVATE LIMITED	Director	22/12/1993	22/12/1993	-	Active	NO
3	U01920KA2000PTC026834	PRESTON INDIA PRIVATE LIMITED	Director	3/4/2010	3/4/2010	-	Active	NO
4	U00311KA1988PTC009613	ELASTREX POLYMERS PRIVATE LIMITED	Director	3/4/2010	3/4/2010	-	Active	NO

Name :

Mr. Sajan Rachira Koduvi Thomas

Designation :

Director

Address :

Koduvi Rachira, Puthenangady, Kottayam-686001, Kerala, India

Date of Birth/Age :

08.11.1958

Date of Appointment :

27.07.1990

DIN No.:

00322126

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U52323KL1987PTC004915	FALCON AGENCIES PRIVATE LIMITED	Director	30/09/1989	30/09/1989	-	Active	NO
2	U24134KL1990PTC005761	PARAGON POLYMER PRODUCTS PRIVATE LIMITED	Director	27/07/1990	27/07/1990	-	Active	NO
3	U01920KA2000PTC026834	PRESTON INDIA PRIVATE LIMITED	Director	3/4/2010	3/4/2010	-	Active	NO
4	U00311KA1988PTC009613	ELASTREX POLYMERS PRIVATE LIMITED	Director	3/4/2010	3/4/2010	-	Active	NO

Name :

Mr. Reji Rachira Koduvi Joseph

Designation :

Director

Address :

Koduvi Rachira, Aiswarya Road, Kottayam-686004, Kerala, India

Date of Birth/Age :

06.05.1957

Date of Appointment :

01.10.1999

DIN No.:

00418455

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U25191KL1988PTC004991	LEO RUBBERS PRIVATE LIMITED	Director	17/03/1988	17/03/1988	-	Strike off	NO
2	U00311KA1988PTC009613	ELASTREX POLYMERS PRIVATE LIMITED	Director	24/04/1997	24/04/1997	-	Active	NO
3	U24134KL1990PTC005761	PARAGON POLYMER PRODUCTS PRIVATE LIMITED	Director	1/10/1999	1/10/1999	-	Active	NO
4	U52323KL1987PTC004915	FALCON AGENCIES PRIVATE LIMITED	Director	20/04/2006	20/04/2006	-	Active	NO
5	U01920KA2000PTC026834	PRESTON INDIA PRIVATE LIMITED	Director	3/4/2010	3/4/2010	-	Active	NO

Name :

Mr. Thomas Rachira Koduvi Thomas

Designation :

Director

Address :

6 / Windsor Villa, 89 2^nd Main Defence Colony, Indira Nagar, Bangalore-560038, Karnataka, India

Date of Birth/Age :

17.09.1953

Date of Appointment :

22.12.1993

DIN No.:

00467883

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U52323KL1987PTC004915	FALCON AGENCIES PRIVATE LIMITED	Managing director	24/11/1987	24/11/1987	-	Active	NO
2	U24134KL1990PTC005761	PARAGON POLYMER PRODUCTS PRIVATE LIMITED	Director	22/12/1993	22/12/1993	-	Active	NO
3	U01920KA2000PTC026834	PRESTON INDIA PRIVATE LIMITED	Director	31/08/2006	31/08/2006	-	Active	NO
4	U91100MH1951GAT008683	ALL INDIA RUBBER INNDUSTRIES ASSOCIATION	Director	26/09/2006	26/09/2006	-	Active	NO
5	U00311KA1988PTC009613	ELASTREX POLYMERS PRIVATE LIMITED	Director	3/4/2010	3/4/2010	-	Active	NO

Name :

Mani Rachira Koduvi Thomas

Designation :

Director

Address :

No. 1, Lakeview Defence Colony, Shettihalli, Bangalore-560015, Karnataka, India

Date of Birth/Age :

26.11.1951

Date of Appointment :

27.04.2010

DIN No.:

00052008

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U00311KA1988PTC009613	ELASTREX POLYMERS PRIVATE LIMITED	Director	24/04/1997	24/04/1997	-	Active	NO
2	U01920KA2000PTC026834	PRESTON INDIA PRIVATE LIMITED	Managing director	1/4/2000	1/4/2000	-	Active	NO
3	U19202KA2001PTC028831	PARAGON FOOTWEARS PRIVATE LIMITED	Director	28/03/2001	28/03/2001	-	Active	NO
4	U24134KL1990PTC005761	PARAGON POLYMER PRODUCTS PRIVATE LIMITED	Director	30/09/2010	27/04/2010	-	Active	NO
5	U52323KL1987PTC004915	FALCON AGENCIES PRIVATE LIMITED	Director	30/09/2010	16/06/2010	-	Active	NO

Name :

Mr. Abraham Mathew

Designation :

Director

Address :

Murattupoovathinkal, Pattukalathil, Kottayam-686004, Kerala, India

Date of Birth/Age :

21.03.1943

Date of Appointment :

27.04.2010

DIN No.:

00322208

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U25191KL1988PTC004991	LEO RUBBERS PVT LTD	Director	17/03/1988	17/03/1988	-	Strike off	NO
2	U01920KA1988PTC009223	PRESTON POLYMERS PRIVATE LIMITED	Director	27/06/1988	27/06/1988	-	Amalgamated	NO
3	U01920KA2000PTC026834	PRESTON INDIA PRIVATE LIMITED	Director	1/4/2000	1/4/2000	-	Active	NO
4	U00311KA1988PTC009613	ELASTREX POLYMERS PRIVATE LIMITED	Director	30/09/2006	30/09/2006	-	Active	NO
5	U24134KL1990PTC005761	PARAGON POLYMER PRODUCTS PRIVATE LIMITED	Director	30/09/2010	27/04/2010	-	Active	NO
6	U52323KL1987PTC004915	FALCON AGENCIES PRIVATE LIMITED	Director	30/09/2010	16/06/2010	-	Active	NO

Name :

Mr. Joseph Zachariah

Designation :

Director

Address :

# 108 Shanthi Layout, Shettihalli, Bangalore-560015, Karnataka, India

Date of Birth/Age :

01.01.1960

Date of Appointment :

27.04.2010

DIN No.:

00051866

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U00311KA1988PTC009613	ELASTREX POLYMERS PRIVATE LIMITED	Managing director	1/10/1991	1/10/1991	-	Active	NO
2	U19202KA2001PTC028831	PARAGON FOOTWEARS PRIVATE LIMITED	Managing director	28/03/2001	28/03/2001	-	Active	NO
3	U01920KA2000PTC026834	PRESTON INDIA PRIVATE LIMITED	Director	31/08/2006	31/08/2006	-	Active	NO
4	U24134KL1990PTC005761	PARAGON POLYMER PRODUCTS PRIVATE LIMITED	Director	30/09/2010	27/04/2010	-	Active	NO
5	U52323KL1987PTC004915	FALCON AGENCIES PRIVATE LIMITED	Director	30/09/2010	16/06/2010	-	Active	NO

Name :

Mr. Vijoo Zachariah

Designation :

Director

Address :

# 407 Silver Palace, # 5 1^st Main Vasant Nagar, Bangalore-560052, Karnataka, India

Date of Birth/Age :

30.10.1963

Date of Appointment :

27.04.2010

DIN No.:

00053037

Other Directorship

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U01920KA1988PTC009223	PRESTON POLYMERS PRIVATE LIMITED	Managing director	27/06/1988	27/06/1988	-	Amalgamated	NO
2	U00311KA1988PTC009613	ELASTREX POLYMERS PRIVATE LIMITED	Director	1/10/1991	1/10/1991	-	Active	NO
3	U01920KA2000PTC026834	PRESTON INDIA PRIVATE LIMITED	Director	1/4/2000	1/4/2000	-	Active	NO
4	U24134KL1990PTC005761	PARAGON POLYMER PRODUCTS PRIVATE LIMITED	Director	30/09/2010	27/04/2010	-	Active	NO
5	U52323KL1987PTC004915	FALCON AGENCIES PRIVATE LIMITED	Director	30/09/2010	16/06/2010	-	Active	NO

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Names of Shareholders	No. of Shares
Joseph K Thomas	105000
Sajan K. Thomas	105000
Rejl ABRAHAM	75000
K. T. Thomas	75000
Reji.K.Joseph	100000
Mani K. Thomas	65000
Abraham Mathew	100000
Joseph Zacharlah	100000
Vljoo ZACHARIA	100000
Annamma Scaria	25000
Mithun Abraham Joseph	50000
Navln Thomas	30000
Koshy Thomas	30000
Thomas Mani	40000
Total	1000000

As on 30.09.2011

Equity Share Break up (Percentage of Total Equity)

Category	Percentage
Directors or relatives of Directors	100.00
Total	100.00

BUSINESS DETAILS

Line of Business :

Manufacturer and Exporter of Velox Solid Rubber Tyres.

Products :

Product Description	Item Code No.
Rubber Chappal	640220.00

PRODUCTION STATUS (31.03.2011)

Licensed Capacity: Not Available

Installed Capacity

Particular	Quantity (Pairs)
At Salem Factory	46800 / Day
At Hyderabad Factory	50000 / Day
At Kottayam (Including job work)	11700 / Day
Ato Kolkatta	4600 / Day

Note: Installed Capacity is as certified by Managing director on which reliance is placed by the Auditors.

Actual Production

Particulars	Quantity (Pairs)
Production	56523257

GENERAL INFORMATION

No. of Employees :

Not Divulged

Bankers :

• The South Indian Bank Limited, Muttambalam P O, Kanjikuzhy, Kottayam-686004, Kerala, India
• Bank of Baroda, Baker Junction, Kottayam-686001, Kerala, India
• Axis Bank Limited, Ground Floor, Century Towers, Near Y.W.C.A, M.C.Road, Kottayam - 686001, Kerala, India

Facilities :

(Rs. In Millions)

Secured Loan	As on 31.03.2011	As on 31.03.2010
Rupee term loans Bank secured	162.574	63.181
Total	162.574	63.181
Unsecured Loan	As on 31.03.2011	As on 31.03.2010
Loans director Unsecured	338.587	318.616
Deferred Sales tax loan unsecured	77.112	68.069
Total	415.699	386.685

Banking Relations :	--
Auditors :
Name :	K. Venkatachalam Aiyer and Company Chartered Accountants
Address :	Building No. 41 / 3647 B, 1^st Floor Blue Bird Towers Providence Road Pin 6820188
PAN.:	AAEFK0880A
Related Parties (As On 31.03.2010) :	Paragon Rubber Industries Leo Rubbers Prerston India Private Limited K U Thomas and Company Paragon Footwears private Limited Elastrex Polymers Private Limited Perston Polymers Private Limited Falcon Agencies Private Limited

CAPITAL STRUCTURE

As on 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value		Amount
1000000	Equity Shares	Rs.100/- each	Rs.100.000 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		100.000	100.000	4.500
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		416.407	480.034	221.165
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		516.407	580.034	225.665
LOAN FUNDS
1] Secured Loans		162.574	63.181	164.621
2] Unsecured Loans		415.699	386.685	380.752
TOTAL BORROWING		578.273	449.866	545.373
DEFERRED TAX LIABILITIES		0.000	0.221	1.221
TOTAL		1094.680	1030.121	772.259
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		622.082	432.053	221.363
Capital work-in-progress		114.593	45.615	11.794
INVESTMENT		0.000	0.000	0.000
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	987.986	686.151	381.276
	Sundry Debtors	140.647	157.221	130.585
	Cash & Bank Balances	29.435	87.890	182.986
	Other Current Assets	0.120	0.135	2.394
	Loans & Advances	72.001	64.371	23.795
Total Current Assets		1230.189	995.768	721.036
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	317.583	179.947	151.171
	Other Current Liabilities	551.139	229.924	16.198
	Provisions	3.462	33.444	14.565
Total Current Liabilities		872.184	443.315	181.934
Net Current Assets		358.005	552.453	539.102
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		1094.680	1030.121	772.259

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Income		2562.072	1422.203
		Other Income		19.265	7.271
		TOTAL (A)		2581.337	1429.474
Less	EXPENSES
		Raw material consumed		1513.595	1055.244
		Packing material consumed		128.603	72.103
		Purchase of intermediary/ finished goods		26.567	33.326
		Manufacturing expense		351.459	213.337
		Administrative and other expenses		95.622	55.649
		Selling and distribution expenses		141.075	66.784
		Stock differential		(174.546)	(188.015)
		TOTAL (B)		2082.375	1308.428
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			498.962	121.046
Less	FINANCIAL EXPENSES (D)			41.375	25.950
			NA
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			457.587	95.096
Less/ Add	DEPRECIATION/ AMORTISATION (F)			57.433	25.467
	PROFIT BEFORE TAX (E-F) (G)			400.154	69.629
Less	TAX (H)			141.285	26.782
	PROFIT AFTER TAX (G-H) (I)			258.869	42.847
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD			183.387	140.539
	BALANCE CARRIED TO THE B/S			442.256	183.386
	EARNINGS IN FOREIGN CURRENCY			NA	0.934
	Earnings Per Share (Rs.)			368.90	952.17

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	NA	10.03	3.00
Net Profit Margin (PBT/Sales)	(%)	NA	15.62	4.90
Return on Total Assets (PBT/Total Assets}	(%)	NA	28.03	7.39
Return on Investment (ROI) (PBT/Networth)		NA	0.69	0.31
Debt Equity Ratio (Total Liability/Networth)		2.81	1.54	3.22
Current Ratio (Current Asset/Current Liability)		1.41	2.45	3.96

LOCAL AGENCY FURTHER INFORMATION

PROVISION AND CONTINGENCIES

Rs. In Millions

Particular	31.03.2011	31.03.2010
Disclosure of contingent liabilities and provision
Details of indemnity for guarantees given by Bank	103100.000	11400.000
Details of disputed tax liabilities relating to sales service and income
Details of Disputed sales tax	1792700.000	992900.000
Details of Disputed income tax	386400.000	386400.000
Details of Disputed excise demands	7700.000	0.000
Details of other Disputed tax liabilities	2650000.000	0.000

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U24134KL1990PTC005761
Name of the company	PARAGON POLYMER PRODUCTS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	Paragon Building, P B No. 61, Sreenivasa Iyer Road, Chalukkunnu, Kottayam-686001, Kerala, India priktm@asianetindia.com
This form is for	Modification of charge
Charge identification (ID) number of the charge to be modified	10263900
Type of charge	Immovable Property Book Debts Movable Property (not being pledge) Floating Charge
Particular of charge holder	Axis Bank Limited, Ground Floor, Century Towers, Near Y.W.C.A, M.C.Road, Kottayam - 686001, Kerala, India Arya.Sudhakaran@axisbank.com
Nature of instrument creating charge	Agreement for renewal of Working Capital facility for Rs.200.000 Millions
Date of instrument Creating the charge	19.01.2012
Amount secured by the charge	Rs.200.000 Millions
Brief of the principal terms an conditions and extent and operation of the charge	Rate of interest CC/ WCDL: Base rate+3.25%, Presently at 13.25% p.a. (Interest payable monthly). LC / Buyer's Credit: Commission / Charges as per Bank Standard Rates. Terms of repayment Repayable on demand Margin (i) CC - Raw Material - 25% Stock in Process - 25% Finished goods & Pkg. Material - 25% Stores & Spares - 25% Book Debts (Cover period 90 days) - 25% (ii) LC - 10% to be collected upfront and kept in TDR with Bank's lien noted thereon. Extent and operation of the charge Existing First charge by way of Equitable Mortgage of properties and paripassu charge on Current assets of the Company shall continue to secure the credit facilities. Others Nature of facility: CC - Rs.100.000 Millions LC - Rs.100.000 Millions (fully interchangeable with sub limits) Buyers Credit - (Rs.100.000 Millions) (sub-limit of LC limit) LC/Buyers Credit/ LOU for Buyers credit - (Rs.50.000 Millions) (new sub-limit of LC limit) Total - Rs.200.000 Millions
Short particulars of the property or asset(s) charged (including complete address and location of the property)	Existing (1)Equitable Mortgage on property having an extent of (i)49cents of land(including 5cents in the joint canal) and (ii)2.12 Acres of land(including 10cents in the joint Koneru and joint river) alongwith 11000 sq.ft ACC sheet shed building and 2500 sq.feet RCC building office and 300 sq.feet ACC Sheet building along with Asbestos Sheet and H.P.Bore well, aggregating to 2.61 Acres situated in Re.Sy.No.218, Surampalli Village, Gannavaram Mandal, within sub registry of Gannavaram, Krishna District and (2) First paripassu charge on the entire current assets of the company, both present and future shall continue to secure the renewed credit limit.
Date of instrument modifying the charge	05.04.2011
Particulars of the present modification	On 19.01.2012, (i) sanctioned Letter of Credit / Buyers Credit Limit for Rs.50.000 Millions as new sub limit of LC (ii) Existing Equitable Mortgage on properties as detailed in Column (15) and First paripassu charge on the entire Current assets of the Company, both present and future shall continue as security. (iii) There is no change in other terms and conditions.

Fixed Assets:

• Land
• Buildings
• Furniture and Fixtures
• Plant and Machinery
• Electrical Installations
• Office Equipments
• Vehicles
• Lab Equipments

WEB DETAILS

History / Profile 

In the year 1975 with a production capacity of 1500 pairs per day, Paragon made its humble entry into the Indian market. Kerala, the southernmost tip of the country was home to the young brand. Known as ‘Gods own Country’ or ‘Land of Rubber ’, Kerala has a 90 % share of India’s natural rubber production. In the year 1982, after gaining popularity in its home state of Kerala, Paragon began its passage into the other Indian states.

The company’s distribution of footwear is networked through 15 depots across India. Retail shop keepers are serviced by more than 300 distributors, delivering stocks to every corner of the country in the shortest possible time. The company strongly believes that its greatest strength is its staff and its distributors.

As a brand that sells all over the country, Paragon needs little or no introduction in the Indian sub-continent. While rubber footwear continues to be its leading product, the Paragon brand name brings its longstanding assurance of quality and durability to a full range of other footwear products made of Poly-urethane (PU), Poly Vinyl Chloride (PVC), Ethylene-vinyl acetate (EVA) and Thermo Plastic Rubber (TPR) soles too. Paragon also has an in-house footwear design team dedicated to creating new designs and models to keep up with market demand.

The Paragon Group of companies is considered No. 1 in the organized rubber footwear sector. Today, Paragon’s total production capacity (in-house) is 400,000 pairs a day. Apart from in-house production, the No.1 Footwear Company has also outsourced production of footwear in Bangalore, Calcutta and other places. Therefore the total sales is approximated to 13, 70, 00,000 pairs each year. Catering to millions with the promise of long-lasting footwear, Paragon has grown to become the No.1 footwear brand in the country. Promoted by the Paragon Group of Companies, it has state-of-the-art ISO-9001 certified factories incorporating the latest in footwear technology at:

1) Kottayam, Kerala
2) Bangalore, Karnataka
3) Salem, Tamil Nadu
4) Hyderabad, Andhra Pradesh

Paragon has advanced laboratories, attached to each of its factories to test raw materials, semi-finished and finished products. All products are tested at every stage of production. With this rigorous quality control, it has built a trustworthy reputation amongst its customers. Its procedures in manufacturing a suitable blend of synthetic and selected natural rubber products have made it the most durable rubber footwear to hit the Indian Market.

With Paragon assuring durability, availability and quality, the brand has created a wide base of satisfied customers. Not only is the rubber footwear produced by the company bio-degradable, but also the packing material used is made of recycled paper in order to make it more environment-friendly. The PVC, EVA, & PU soles are all virgin polymers produced in-house to reduce health hazards. For this the company has taken great measures and has certified its factories as ISO 14001:2004. In addition to making high-quality footwear - Paragon Group, being the No.1 Footwear Company in India, also manufactures solid tyres and school bags. The solid tyres are specifically made for trolleys and other material movement equipment, like Fork Lifts, while the school bags from Paragon are made of high-standard, lab-tested Polyester.

Paragon has an ambitious expansion program and sales are expected to go up by 200% and more in the coming years. Paragon’s sales revenue is predicted to cross Rs.6750.000 Millions [150 million US $ (at Rs 45 per US $)] in the financial year 2010-11. Paragon regularly exports its products to various countries including Italy, Africa and a few nations of the Gulf. Several new ranges of footwear, school bags and solid tyres are in planning. In order to see this aim achieved, the company has begun planning for additional production facilities and even installed SAP ERP system for all its business processes. Paragon aims at being the largest footwear brand in the country, not just in terms of volume and quality but in terms of sales revenue as well.

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.80
UK Pound	1	Rs.78.78
Euro	1	Rs.65.74

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	6
PAID-UP CAPITAL	1~10	6
OPERATING SCALE	1~10	5
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	5
--PROFITABILIRY	1~10	4
--LIQUIDITY	1~10	5
--LEVERAGE	1~10	5
--RESERVES	1~10	6
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		47

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.